Maruti Suzuki sees huge potential for smart finance and online sales: here’s why

Maruti Suzuki and 14 financiers have come together to offer Smart Finance services tailored to customer needs. Since the Covid-19 pandemic, leads for online sales have increased exponentially for the manufacturer.

Maruti Suzuki India Limited recently announced that customers will be able to finance their vehicles more easily than before. With Smart Finance, Maruti Suzuki customers can benefit from online financing options on an integrated platform for a single solution. MSIL integrated its Smart Finance online platform with 14 financiers to offer competitive interest rates to Arena and Nexa clients. In addition, the platform provides real-time loan status monitoring, integration of old vehicle trade-in prices, and co-applicant financing options.

In May 2020, Maruti Suzuki conducted a pilot project for Smart Finance in Gurgaon, Haryana. At the time, 3 banks – HDFC, ICICI and Yes Bank were the only financiers on board. It was then rolled out to limited cities in December 2020. The feature is now available nationwide with a current roster of 14 financiers on board. Thanks to the Smart Finance solution, Maruti Suzuki claims to have disbursed 1.16 lakh in loans since its introduction.

Speaking to Express Drives, Shashank Srivastava, Senior Executive Director (Marketing & Sales), MSIL mentioned that the biggest hurdle in setting up Smart Financing was the platform’s integration with all the different platforms- digital forms of banks and financiers. It was followed by the development of a user-friendly interface for the customer. After extensive discussions with the banks, MSIL with the help of its internal team as well as outsourced software developers were able to create the Smart Finance platform.

Srivastava pointed out that the benefits for Smart Finance clients would be huge. MSIL believes that it will provide clients with transparent and comprehensive financing offers and help them choose the right financial partner, selecting the most suitable loan product, completing all formalities related to financing and loan disbursement. The whole process would be done online through the digital platform. This is supplemented by the vehicle exchange offer and the co-applicant financing option also integrated into the platform.

The automaker currently has 14 financiers on board. Srivastava confirmed that in the future, the automaker will expand its offering by including more financiers, structured finance products and also improving the customer experience.

Srivastava also mentioned that around 28% of all financed purchases are executed through the Smart Finance platform with 26,000 to 28,000 transactions each month.

Additionally, Maruti Suzuki claims to help customers who may choose third-party financiers who may come up with bad deals with hidden costs. Srivastava ensures that the Smart Finance platform offers transparency for clients.

In the digitalized world, the automotive industry has strived to offer online sales platforms to the consumer. It is not only prevalent in India, but all over the world. Srivastava states that in 2016, Maruti Suzuki launched its online product sales platform. At the time, the online conversion rate was only 3%, then jumped to 16% in 2019. However, when the industry turned to a more digital platform in light of the Covid-19 pandemic, the conversion rate increased exponentially to around 35-38 for MSIL.

Srivastava supports the fact that the pandemic has accelerated the performance of the online sales platform. However, he also believes that this is an irreversible process and sees online car sales increase even more over time.

Currently, in the customer’s buying journey, Maruti Suzuki identifies 26 touchpoints, of which 24 have been digitized. The two non-digitizable points are of course the road tests and the delivery of the products. With Smart Finance, Maruti Suzuki claims to have also digitized three main aspects of the financial journey.

Get live stock quotes for BSE, NSE, US market and latest net asset value, mutual fund portfolio, see the latest IPO news, top IPOs, calculate your tax Using the income tax calculator, know the best winners, the best losers and the best equity funds in the market. Like us on Facebook and follow us on Twitter.

Source link

David A. Albanese

Leave a Reply

Your email address will not be published.